CoinDesk
Capital B raised €7.6 million ($8.8 million) from Bitcoin developer and investor Adam Back through a share-and-warrant deal, with proceeds earmarked to buy up to 376 BTC. If completed, the purchase would lift the Euronext Growth Paris-listed firm's treasury from 3,145 BTC to 3,521 BTC. The existing holdings cost €284.2 million, or an average of €90,352 per BTC, and were valued at €214 million when last reported.
Why it matters
The deal links a public Bitcoin treasury strategy to a prominent industry backer. Back, Blockstream's CEO and an early cypherpunk cited in Bitcoin's 2008 white paper, is investing as Capital B seeks to increase its direct BTC exposure.
The financing makes dilution central to the trade. Capital B issued 13,181,030 shares at €0.58, each with four five-year warrants. Full exercise would create 144.9 million more shares and generate €135.8 million, taking potential gross financing proceeds to €156.8 million. A 1% holder before the placement would own 0.90% afterward and 0.65% after full exercise.
Market impact
The deal forms part of a €21 million financing that also includes strategic investor TOBAM. Capital B shares traded at €0.485 around midday Wednesday, down 2.1% as crypto prices weakened. BTC traded below $77,000, down nearly 1.8% over 24 hours.
For Bitcoin treasury investors, the deal is another listed-company route to BTC accumulation. For Capital B shareholders, the key watchpoints are completion of the planned purchase, BTC's performance against the €90,352 average cost, warrant exercise and the 10-for-1 share consolidation planned for Sept. 8.
Frequently asked questions
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How large would Capital B's Bitcoin treasury become if it completes the planned purchase?
Buying up to 376 BTC would increase Capital B's reported treasury from 3,145 BTC to 3,521 BTC.
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Who participated in Capital B's wider €21M financing?
Adam Back provided €7.6M ($8.8M), and strategic investor TOBAM was also included in the wider €21M financing.
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How much dilution could Capital B's warrant package create for existing shareholders?
Full exercise would create 144.9M additional shares. A 1% holder before the placement would own 0.65% after full exercise.
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What were Capital B's reported BTC cost basis and holding value?
The 3,145 BTC holdings cost €284.2M, averaging €90,352 per BTC, and were valued at €214M when last reported.
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What corporate action is Capital B planning for its shares?
Capital B plans a 10-for-1 share consolidation on Sept. 8, with warrant ratios and exercise prices adjusted proportionately.
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